Jake Fruge Subject of FINRA Suspension
Jake Fruge (CRD #: 6187396) has been suspended by FINRA. Prior to his suspension, he was registered with PFS Investments. This disclosure appears on his BrokerCheck record, accessed on February 14, 2024. Keep reading if you have questions.
Two-Year FINRA Suspension
On November 28, 2023, FINRA suspended Jake Fruge following allegations that he engaged in an outside business as owner and co-CEO of a company that engaged in e-commerce and lead generation without providing written notice to PFS Investments. The outside business customers allegedly included PFS representatives and customers.
Jake Fruge allegedly disclosed only one component of the business – the e-commerce storefront – and left out the digital real estate component.
When PFS found out that the outside business had been marketed to other firm representatives, the firm had concerns that this would create a conflict of interest. PFS allegedly warned Jake Fruge to stop this conduct and requested further information about the company, including names of any firm customers or registered representatives who had purchased e-commerce storefronts. Jake Fruge allegedly failed to provide the requested information.
PFS Investments allegedly directed Jake Fruge to stop engaging in marketing activities for the e-commerce storefront. He declined to do so and the firm told him to choose between his work with PFS and his outside business. He allegedly chose to continue with his outside business after winding down his work with the firm.
Terms of the AWC
As part of the terms of the Acceptance, Waiver, and Consent agreement with FINRA, Jake Fruge consented to a $10,000 fine and a 24-month suspension.
FINRA Rule Regarding Outside Business
FINRA Rule 3270 requires brokers to disclose to their firm any business activities they engage in outside it, including any compensation they expect to receive.
Outside Business Activities
Jake Fruge has the following outside businesses on his detailed BrokerCheck record:
- Sales of investment-related products for companies affiliated with PFS Investments
- Non-investment related products for Primerica
- JFJ Properties
- Champion E-Com
- The Jota Group
- Champnation Enterprise
- JFJ Holdings
Tax Liens
Jake Fruge has three tax liens on his record, totaling approximately $87,344.64.
Background Information
Jake Fruge has passed the following exams:
- Series 63 Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 6 Investment Company Products / Variable Contracts Representative Examination
- Series 26 Investment Company Products/ Variable Contracts Principal Examination
Kurta Law Can Help
If you have worked with Jake Fruge and you have concerns about your investments, do not hesitate to contact us at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Do not let securities fraud go unchecked. Start your recovery process today.
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